The UK government plans to end the tax break on imports of goods worth less than £135, making them subject to customs duty, with changes taking effect by March 2029. The move follows similar actions by the US and EU, which have removed or announced plans to remove their 'de minimis' exemptions.
The British Chambers of Commerce (BCC) has warned that removing the exemption could push up prices and harm small businesses. A BCC survey found that if import costs on small shipments rise by 5-10%, over half of UK goods importers would pass this on to consumers. Only a fifth could absorb the costs.
British retailers including Primark, Currys and Boohoo have backed the change but criticised the 2029 timeline, arguing it allows Chinese rivals Shein and Temu to undercut them in the meantime. The government says the delay is needed to build a new duty collection system and give businesses time to prepare.
The BCC called for a phased approach, urging ministers not to introduce charges per item or consignment, which it said would be inflationary and disproportionately affect small firms. It also recommended retaining VAT collection at point of sale for these purchases.
An HM Treasury spokesperson said the reform backs UK businesses to compete and grow, controls border safety and goods flow, and aligns with international partners. The technical consultation on the new customs arrangements closed on Friday.
